Amara Raja & Ather Energy Unite to Innovate Electric Two-Wheeler Batteries

Amara Raja's energy and mobility division has entered into an agreement with Ather Energy to develop and supply Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP) lithium-ion cells for electric two-wheeler batteries, as disclosed to stock exchanges on August 1.

Amara Raja Energy & Mobility saw a 2.06% increase, bringing its share price to ₹1658.90, following the announcement that its wholly owned subsidiary, Amara Raja Advanced Cell Technologies (ARACT), is set to sign a memorandum of understanding (MoU) with Ather Energy.

These batteries will be manufactured domestically at Amara Raja's forthcoming Gigafactory in Divitipally, Telangana. Amara Raja aims to become one of India's leading producers of Li-ion and advanced chemistry cells and plans to invest ₹9,500 crore in the 16 GWh gigafactory project.

The collaboration is designed to support the growth of India's electric vehicle market and enhance the localization of EV technologies, according to Amara Raja.

Tarun Mehta, co-founder and CEO of Ather Energy, described this partnership as a crucial step in advancing homegrown cell technology. "This will help us reduce costs and allow us to source lithium-ion cells specifically tailored to Ather's needs."

Amara Raja recently signed an agreement with Gotion-InoBat-Batteries (GIB) to localize global LFP technology for producing Li-ion cells tailored for Indian conditions. Vikramaditya Gourineni, Executive Director of Amara Raja Energy & Mobility, expressed pride in partnering with Ather, emphasizing their joint focus on developing market-relevant solutions.

As India prioritizes clean and green energy, the automotive sector is undergoing a significant shift toward electric vehicles (EVs), especially within the two-wheeler market. Projections for the industry suggest that EV two-wheeler adoption will reach 40% by 2030.

Gourineni also highlighted the respect for Ather's contributions to electrifying mobility in India and their holistic approach to sustainable personal mobility solutions. He noted that Amara Raja has made significant progress in building world-class facilities for manufacturing cells and battery packs customized for Indian conditions. Their collaboration with Gotion-InoBat is expected to accelerate these efforts.

Amara Raja Energy & Mobility, previously known as Amara Raja Batteries, is a prominent manufacturer of energy storage products for industrial and automotive applications in India. The company’s industrial battery brands include PowerStack, AmaronVolt, and Quanta. It also leads in automotive batteries under the brands Amaron and PowerzoneTM, which are widely distributed through an extensive retail network across India.

In financial news, the company's consolidated net profit surged by 30.9% to ₹229.78 crore in Q4 FY24, compared to ₹175.60 crore in Q4 FY23. Revenue from operations increased by 19.5% to ₹2,907.86 crore in Q4 FY24, up from ₹2,433.24 crore in the same quarter of the previous year.